"There might be a case for digital currency," Bank of England's Bailey says
May 14, 2021, 10:15 am

Representation of the Bitcoin virtual currency standing on the PC motherboard is seen in this illustration picture, February 3, 2018. (Reuters)

"There might be a role for a state-backed digital currency in Britain although there would be big implications ranging from the setting of interest rates to privacy," Bank of England Governor Andrew Bailey said

"It may well be that we do end up with a digital currency. It's a few years off at the moment," he added

"The use of cash was decreasing but creating a central bank-backed currency would have significant impacts on the financial system and beyond," Bailey said.

"Security, that is an issue for us. Privacy, that's a big issue, a very big issue," he said.

"Plans developed by Facebook for a digital currency set off a lot of alarm bells about access to information," Bailey said.

Earlier on Thursday, Deputy Governor Jon Cunliffe said he saw good reasons for a BoE digital currency.

British Finance Minister Rishi Sunak demanded the BoE and other regulators last month to look at the case for creating a central bank digital currency to respond to the challenge from cryptocurrencies such as bitcoin.

"Factors that were pushing up inflation would probably not persist, but the BoE would watch the situation very closely," Bailey said

"The really big question is: 'Is (higher inflation) going to persist or not?' Our view is that on the basis of what we're seeing so far, we don't think it is," Bailey said.

"We think there are reasons to think that the economy will start to bounce back this year but it can't be sustained at that level of growth," he said. "But we are watching it very carefully.... Yesterday we had a very high number for inflation in the U.S."

"There was currently no prospect of an agreement on "equivalence" of rules for the sector," Bailey said about Britain's attempts to secure a post-Brexit deal on financial services with the European Union.

He repeated his view that London should not try to get such a deal at any price.

"There's no lack of goodwill. But if this issue isn't sorted out then I'm afraid we will learn to live without equivalence, that's the reality of it." Bailey said

Officials from Britain's financial services sector say they do not expect access to the EU's markets for the foreseeable future.

William Schomberg, Reuters, Bank of England's Bailey says there might be a case for digital currency

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.